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Exhibit 10.1
LEASE AGREEMENT
This Agreement made and entered into this 19th day of April, 2007,
by and
between Sovereign Oil, Inc. ("Sovereign Oil"), a Nevada
corporation, and North
American Refining Co. ("North American Refining") (hereinafter
referred to
collectively as "parties").
IT IS HEREBY AGREED:
1. TERM: The term of this Agreement shall be for a period of a
ninety day trial
period ("Lease Period") commencing from the date of the execution
of this
Agreement by both parties.
2. TERMS OF PAYMENT/LEASE VALUE AND CONSIDERATION: Sovereign Oil
shall pay North
American Refining the following:
Lease payment: $10.00 per year and
Blending and Drying fees: Blending fees at $0.15 per gallon and
drying fees at
$0.15 per gallon. No minimum fees required under this
Agreement.
in consideration for use of the following located at 7601 West 47th
Street,
McCook, Illinois 60525: a) the "blending building" and associated
equipment b)
associated loading dock, and c) use of up to twenty (20) storage
tanks for the
blending based on availability of oils and d) equipment associated
with the
items above based on availability. It is agreed that Sovereign Oil
will also
retain the right to use other incidentals associated with its
business, such as
occasional use of the truck scale for weighting of loaded trucks,
associated
pumps for storage tanks, and entry to the site for loading or
unloading of
materials, entry/exit of work force, and /or servicing of
equipment.
Sovereign Oil payment terms are cash or good Company Check, with
the Lease
Payment being due upon the execution of this agreement to cover the
ninety day
trial period and blending and drying fees are due and payable
monthly on the
tenth day following the last day of each month for the previous
month's
activity.
All blending and drying fees shall remain at the set price during
the duration
of this Agreement, unless otherwise agreed upon by both parties in
writing,
and/or in the event that Sovereign Oil requests additional storage,
or site
usage above and beyond that specified within said Agreement. Should
Sovereign
Oil request additional site space, North American Refining has
agreed to make
every effort possible to provide additional space within
reason.
3. LICENSES: Both parties shall maintain all licenses and permits
as required
for their separate businesses.
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4. WARRANTIES/RETENTION OF OWNERSHIP: Sovereign Oil represents and
warrants that
it shall comply with applicable laws and regulations regarding any
business
conducted at the North American Refining facility, and North
American Refining
represents and warrants that the ownership of all equipment and/or
product kept
at the North American Refining facility by Sovereign Oil shall be
retained by
Sovereign Oil. Sovereign Oil is responsible for all product loading
and
unloading in an environmentally sound and safe manner.
5. TERMINATION OF AGREEMENT: North American Refining shall have the
right to
terminate this Agreement with 15 days written notice.
6. FORCE MAJEURE: Neither Sovereign Oil nor North American Refining
shall be
construed to be in default of this Agreement to the extent either
party fails to
perform its obligations or duties due to forces beyond its control,
including
but not
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